Indian Prime Minister Narendra Modi will come bearing gifts when he meets US President Donald Trump on Thursday, hoping concessions on tariffs, fresh business deals and the prospect of cooperation on China will win the US president's favor.
Trump, not yet one month into his presidency, has wielded the threat of tariffs against friend and foe alike to try to extract new trade deals, investment or law enforcement help.
India may not be an exception: Although Trump had a warm relationship with Modi in his first term, he has called India a "very big abuser" on trade and his levies on steel and aluminum hit India particularly hard.
Ahead of his White House meeting on Thursday, Modi has readied promises including increased liquefied natural gas, combat vehicle and jet engine purchases, according to Indian government officials who declined to be named.
Indian officials are also looking at possible deals on US agriculture exports to India and investment in nuclear energy, along with tariff cuts in at least a dozen sectors, including electronics, medical and surgical equipment, and chemicals.
Those are areas Trump's team believes India needs to make improvements, according to another person familiar with their thinking.
It's a "gift" for Trump, said one of the sources, who declined to be named as they previewed a private meeting.
US and Indian officials were also moving forward with talks on a bilateral trade deal, with a Trump administration official saying they hoped to have a deal in place this year.
"We envision a stronger defense partnership, that's procurement and moving forward on things like defense exercises," said a senior Trump administration official.
"On energy, we have the ability to literally power the Indian economy with US energy sales, and the president believes both of those things can bring down the trade deficit."
The case of billionaire Gautam Adani may come up in the talks after his indictment by the US Justice Department in November over an alleged bribery scheme. Adani hails from Modi's western state of Gujarat and his Adani Group runs several key infrastructure projects across the globe.
Opponents and critics often allege the meteoric rise of Adani's ports-to-energy empire was partly due to his close relations with, and favorable treatment by, administrations run by Modi's BJP and its allies. The duo have repeatedly denied impropriety.
Another thorny issue will be in the background: the alleged Indian intelligence plot to assassinate a Sikh activist in the United States during the administration of Trump's predecessor, Joe Biden. The US official who briefed reporters said Trump prioritizes the safety of every American.
This time, the tariff issue will be front and center, said Richard Rossow, head of the India program at the Center for Strategic and International Studies, a Washington think tank.
"It's going to be a boxing match," he said. "I think India is willing to take a few hits, but there's a limit."
The US has a $45.6 billion trade deficit with India. Overall, the US trade-weighted average tariff rate has been about 2.2%, according to World Trade Organization data, compared with India's 12%.
Trump's administration has vowed reciprocal tariffs on every country that charges duties on US imports, a move that will ratchet up fears of a widening global trade war.
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